Powerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, is pleased to announce its audited results for the year ended 31 December 2022.
FY2022 Summary
Operational Performance
· Substantial progress made in developing the Company’s business strategy, exemplified by new project arrangements.
· Creation of, and continuous progress on the Powerhouse Technology Centre at Bridgend, with view to placing Powerhouse Energy Group at the forefront of the waste-to-energy sector in pyrolysis and gasification.
Financial performance
· Company reported revenue for the year of £380,277.
· Gross profit for the year of £84,365.
· Significant goodwill and trade debt impairment due to Company’s changing business strategy. This reduction in the balance sheet value has no implication on the ongoing business of the Company.
· Cash at bank of £5,882,897 as at 31 December 2022.
Company Growth
· Negotiated terms for Powerhouse to take a 50% shareholding in the Peel NRE Ltd special purpose vehicle, Protos Plastics-to Hydrogen No 1 Ltd – transaction acquiring 100% of the share capital completed post the year end.
· 50% shareholding agreed with Hydrogen Utopia International Plc at Konin in Poland and Tipperary, Ireland.
· Antony Gardner-Hillman appointed as Non-Executive Chairman.
· Anthony Gale and David Hitchcock appointed as new Non-Executive Directors.
· Keith Riley appointed as Interim Chairman and then as Acting Chief Executive Officer.
Outlook
· Change from the original business model, moving away from the model of licensing PHE technology to third party developers for flat returns by way of fixed annual licence fees.
· Announced Joint Venture with Hydrogen Utopia International Plc at County Longford in Ireland, replacing the Tipperary project.
· Obtained full ownership and control of the Protos Plastics-to Hydrogen No 1 Ltd site near Chester.
· Acquired the remaining 52% of Engsolve, the Company’s engineering capability.
· Appointment of Noage Energy Ltd as the Company’s representative in Northern Ireland.
· Revitalised Board including the appointment new Non-Executive Directors bringing a range of additional skills and experience to support the highly experienced competent executive team, including the appointment of Professor Karol Kacprzak in February 2023.
· Vision: to be a leader in technology solutions that rid the world of, and utilise, non-recycled wastes, producing sustainable energy whilst mitigating climate change impacts.
Antony Gardner-Hillman, Non-Executive Chairman, commented:
“Having joined the Board in January this year, I am delighted to see the considerable progress that the Company has made in such a short period of time. This year has seen Powerhouse focused on where the business is heading, moving away from the business model of licensing our technology to third party developers which we felt was under-selling the true value of Powerhouse.
We are also delighted to have re-shaped the Company’s board, with four new non-executive directors who bring a wide range of extensive experience which will support the Company’s growth and strategy going forward.
The changes implemented since the year end leave us well positioned to make significant progress this year and in the longer term as we strive towards a sustainable future. I look forward to the strong future that is ahead for Powerhouse.”
Keith Riley, Acting Chief Executive Officer, commented:
“In 2022 we commenced a transition in the Company’s business strategy that will start to be realised in 2023. This will be to recognise market demand and to provide the Company with a continuing revenue stream and enable its capital projects to be developed as the necessary elements come into place. We have also broadened the base of the business to allow this to happen.
We have had an excellent working relationship with Peel NRE Ltd and look forward to it continuing. 2022 showed, however, that the structure of the Protos Plastic to Hydrogen project as it was, was not optimal and needed to be changed. The two companies worked together on alternative arrangements and in 2023 we concluded that it was best for Powerhouse to take full control. We will now apply the strategy we describe in the Strategic Report in the Annual Report to bring it to fruition.
A key foundation stone of the new business strategy is the Company’s knowhow and capabilities. In 2022 the Company took the decision to invest in these, firstly creating the Powerhouse Technology Centre at Bridgend in Wales, which will be in operation in late 2023, and then the acquisition of Engsolve Ltd and its integration into the Group completed in June 2023. We will build on these further as the Company progresses.
I recognise that 2022 was a frustrating year for those wishing to see construction starting on a facility incorporating Powerhouse technology but believe that the steps taken in 2022 were essential and will lead to an even stronger Company in the future than would otherwise have been the case.”
The annual report and accounts for the year ended 31 December 2022 will be sent to shareholders shortly and available to view on the Company’s website: https://www.powerhouseenergy.co.uk
